Unemployment affects U.S. economic recovery
U.S. labor market has lost 652,000 jobs in May, the biggest monthly decline since 1995 until today, in conditions which are growing fears of a possible stagnation of the American economy. Figures on unemployment in the United States offers information on the number of people who have a job or the number of people who are looking for a job, making it a very relevant tool for the general running of the economy, informs Financial Times. U.S. labor market data made public Friday shows that business has created a modest number of 83,000 jobs in June. The governance of the employment report disappointed economists and confirmed that the labor market has lost momentum since April, when the payroll of the private sector reached 241,000 new jobs.Declining rate of new private sector jobs is a step backwards for Obama and the Democratic administration to be found before mid-term elections in November, during which the economy will be the main theme.
Polls indicate that health jobs and the economy continues to be the main concern and the problem of most Americans, one in three had either unemployment or were forced to work part time in the last 12 months.
Positively to the data was made public Friday that unemployment was declining, from 9.7 percent to 9.5 percent, the lowest level since July 2009.
But economists quickly pointed out that the percentage decline was caused by the fact that the labor market shrank by 652,000 jobs last month. This suggests that those who returned to work this year were left aside.
The American economy lost 125,000 jobs last month but this decline was the result of temporary government employees is dismissed.
Many economists believe U.S. support economic recovery momentum needs of small packages of incentives to assist local government to extend benefits unemployed sis. The measure was due to systematic rejected Republican Senate vote.
“The two things that increase with the highest rate of growth in this economy are the size of the federal government and threatening national debt burden,” said Mitch McConnel, Senate Republican leader.
“When America starts to really create jobs for the duration of the private sector, which will help economic growth, it will be despite the measures taken by the government and not because of them.”11
